San Gold completes Tisdale acquisitions
Ticker Symbol: C:SGR

San Gold completes Tisdale acquisitions

San Gold Corp (C:SGR)
Shares Issued 267,066,760
Last Close 1/21/2010 $3.45
Friday January 22 2010 - News Release

Mr. Dale Ginn reports

SAN GOLD CORPORATION ANNOUNCES CLOSING OF ACQUISITION OF TIMMINS PROPERTY AND ISSUANCE OF OPTIONS

San Gold Corp. has closed its acquisition of all of the property interests of Laurion Mineral Exploration Inc. in Tisdale township, at the mining camp in Timmins, Ont., in consideration of the payment of $1-million and the issuance of one million common shares of San Gold to Laurion. The Tisdale township properties consist of a 31.5-per-cent ownership in the Davidson-Tisdale property and a 100-per-cent interest in the North Tisdale property as well as certain surface rights. The purchase of the Davidson-Tisdale property is outright and free of any royalty while Laurion will retain a 2-per-cent net-smelter royalty on the North Tisdale property. The remaining 68.5 per cent of the Davidson-Tisdale property is currently owned by VG Gold Corp.

Following a re-evaluation of prior work, San Gold intends to actively explore these newly acquired properties with the view to developing the Davidson-Tisdale property following the negotiation of a joint-venture agreement with VG Gold Corp.

The payment to Laurion of $1-million and one million common shares of San Gold are being held in escrow pending the formal registration of the transfer of the assets to San Gold.

The sale of the assets by Laurion to San Gold is subject to the final approval of the TSX Venture Exchange.

The corporation has also issued 3,125,000 incentive stock options to purchase its common shares, exercisable at $3.45 per common share, to approximately 48 directors, officers, employees and consultants of the corporation. The options have been issued pursuant to the corporation's stock option plan.

The issuance of the options is subject to the approval of the TSX Venture Exchange. If the issuance of the options is approved by the exchange, the options will be subject to a minimum hold period of four months and one day in accordance with applicable securities laws and applicable policies of the exchange.

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